12 Frequently Asked Questions About ERR

Back in October, before Enhanced Reporting Requirements (ERR) was introduced, we began hosting monthly webinars to get everyone up to speed on the topic. We rounded up the top 10 questions asked during these pre-ERR sessions, along with their answers. Fast forward three months, and as we all settle into the new ERR norms, the most common questions have changed.

That’s why we’ve compiled a brand-new list of 12 of the most popular ERR queries since January, complete with their answers.

Question 1:

Is giving an employee a bouquet of flowers or a box of chocolates for their birthday reportable under ERR? And is there a minimum amount?

Yes, this would be reportable and would fall under the category of Small Benefit, and no, there is no minimum amount. Employers can give employees up to two small benefits a year, up to a combined value of €1,000, tax-free. So, whether it’s an egg given at Easter, a box of chocolates given at Christmas, or a €1,000 voucher to say thank you – it will be taxable.

Question 2:

Do I need to report payments made to volunteers and unpaid directors?

ERR is only applicable to employees and directors if you are making a reimbursement to a volunteer, you do not need to report it. You will need to make an ERR submission for payments made to unpaid directors. When reporting a payment made to an unpaid director, this can be done directly through ROS, or it can be added manually through BrightExpenses.

Question 3:

If you have a payroll with no expenses, should you send a nil return?

Where no payments are made, no submission is necessary. Unlike the payroll, there are no monthly returns for ERR. A report should only be submitted once the payment has been made or before it’s made.

Question 4:

Are civil service travel rates considered vouched or un-vouched?

If there is a receipt or an invoice to go with the expenses, they would be considered vouched. However, in the absence of a receipt or an invoice, it would be considered un-vouched.

Question 5:

What is the distance an employee must be working from an employer’s base so that meal expenses can be paid tax-free?

To qualify for these expenses, an employee must be working at a site 32km (20 miles) or more from the employer’s base. Check out Revenue’s website for further guidance.

Question 6:

Can you amend ERR submissions made through ROS and BrightExpenses?

Yes, you have the ability to amend submissions made through BrightExpenses and made through ROS.

Question 7:

Would you have to report a reimbursement made to an employee who paid for petrol for work machinery?

If the petrol they paid for was not for their personal use and was for work purposes, it would not fall under ERR and this can be reimbursed tax-free.

Question 8:

What about car washes, parking expenses and toll charges should they be reported under ERR?

If an employee is travelling for business, they would be entitled to be reimbursed for any travel expenses incurred. The employer must look at Revenue’s guidelines on Travel and Subsistence to determine if a payment can be made tax-free.

Question 9:

What if an employee uses a company credit card or company fuel card? Does this fall under ERR?

If an employee used a company credit card or company fuel card to pay for expenses, there are no implications for ERR as there was no reimbursement made.

Question 10:

If an employee works 6 days in one week, can they be paid a remote working allowance for those 6 days or is there a limit of 5 days per week?

There is no 5-day limit for the Remote Working Daily Allowance (RWDA). Once the terms and conditions for RWDA are met, the payments can be made tax-free.

Question 11:

Do you report a gift voucher when it has been bought and paid for or when it is given to the employee?

Under the ERR category of Small Benefit, a report must be submitted on the date the voucher is made available to the employee.

Question 12:

Can an employee receive a small benefit to the limit of €1,000 from one employer and then receive another small benefit to the limit of €1,000 from a new employer in the same year?

Yes, this is possible, as the limit is per employer.

ERR made easy

At Bright, we have developed our own system for ERR, BrightExpenses. BrightExpenses offers an alternative to Revenue’s manual system, to help save you time and provide more accuracy when reporting ERR payments to Revenue.

Bright’s payroll solutions, BrightPay, Thesaurus Payroll Manager, and Surf Payroll, are all integrated with BrightExpenses. Any non-taxable expenses inputted into the payroll software can be sent directly to BrightExpenses. The software is also integrated with ROS, and so this information can then be sent from BrightExpenses directly to ROS, in just a few clicks.

For any non-payroll expenses, these can be added manually into BrightExpenses, and then the information can be sent directly to ROS.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.